NASDAQ:PERI is probably undervalued for the fundamentals it is displaying.

Last update: Mar 6, 2024

Our stock screener has singled out PERION NETWORK LTD (NASDAQ:PERI) as a stellar value proposition. NASDAQ:PERI not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

How do we evaluate the Valuation for NASDAQ:PERI?

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:PERI boasts a 8 out of 10:

PERI is valuated reasonably with a Price/Earnings ratio of 8.53.
PERI's Price/Earnings ratio is rather cheap when compared to the industry. PERI is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.65. PERI is valued rather cheaply when compared to this.
PERI is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PERI indicates a somewhat cheap valuation: PERI is cheaper than 79.17% of the companies listed in the same industry.
PERI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.73, which is the current average of the S&P500 Index.
95.83% of the companies in the same industry are more expensive than PERI, based on the Enterprise Value to EBITDA ratio.
83.33% of the companies in the same industry are more expensive than PERI, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of PERI may justify a higher PE ratio.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PERI scores a 9 out of 10:

With an excellent Return On Assets value of 10.90%, PERI belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.35%, PERI belongs to the top of the industry, outperforming 86.46% of the companies in the same industry.
PERI has a better Return On Invested Capital (13.67%) than 94.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PERI is significantly above the industry average of 7.04%.
The 3 year average ROIC (12.04%) for PERI is below the current ROIC(13.67%), indicating increased profibility in the last year.
PERI has a better Profit Margin (15.80%) than 89.58% of its industry peers.
In the last couple of years the Profit Margin of PERI has grown nicely.
The Operating Margin of PERI (15.71%) is better than 85.42% of its industry peers.
In the last couple of years the Operating Margin of PERI has grown nicely.

Health Analysis for NASDAQ:PERI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PERI has earned a 8 out of 10:

An Altman-Z score of 3.49 indicates that PERI is not in any danger for bankruptcy at the moment.
PERI has a Altman-Z score of 3.49. This is amongst the best in the industry. PERI outperforms 82.29% of its industry peers.
There is no outstanding debt for PERI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
A Current Ratio of 2.14 indicates that PERI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.14, PERI is in the better half of the industry, outperforming 63.54% of the companies in the same industry.
A Quick Ratio of 2.14 indicates that PERI has no problem at all paying its short term obligations.
PERI's Quick ratio of 2.14 is fine compared to the rest of the industry. PERI outperforms 65.63% of its industry peers.

Growth Analysis for NASDAQ:PERI

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PERI, the assigned 8 reflects its growth potential:

PERI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.16%, which is quite impressive.
Measured over the past years, PERI shows a very strong growth in Earnings Per Share. The EPS has been growing by 49.88% on average per year.
The Revenue has grown by 16.08% in the past year. This is quite good.
PERI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.07% yearly.
Based on estimates for the next years, PERI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.40% on average per year.
The Revenue is expected to grow by 15.69% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of PERI contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.